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What will happen if America faces a massive shortage of skilled blue-collar workers to hire? According to Jim Farley, Ford Motor Company’s CEO, it’s a problem that could wreak havoc on household budgets.

“We are in a really vulnerable place — I would argue the most vulnerable we’ve ever been,” he said during a recent bonus episode of his DRIVE with Jim Farley podcast (1).

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Farley went on to explain that the economy is entering dangerous territory as industries struggle to find enough electricians, plumbers, factory workers and construction crews to keep the country running.

If Farley’s right, the consequences could spread far beyond the automaker’s factories.

Farley refers to individuals who build homes, maintain infrastructure, manufacture products and keep supply chains going as the “essential economy.” He argues that without an abundance of these workers, there will be severe consequences.

“Problems in this vital sector impact all of us with higher costs, longer wait times and fewer opportunities,” Farley said.

Those higher costs could show up everywhere, from home repairs and car maintenance to grocery prices. And for everyday consumers already struggling with sticky inflation, the squeeze could get worse if labor shortages continue.

When companies can’t find enough workers, projects take longer, production slows and labor costs rise. Businesses often pass those costs on to consumers.

Mike Rowe, host of the TV series Dirty Jobs and Farley’s guest on the podcast, said many Americans won’t fully appreciate the impact of this trend until it hits closer to home.

“People don’t care about a shortage of plumbers until their toilet doesn’t flush,” Rowe said.

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The shortage of skilled labor has been building for some time, but the problem is becoming more urgent as older workers retire and fewer Americans enter the trades.

According to a joint 2024 study by Deloitte and the Manufacturing Institute, the industry may need to fill 3.8 million jobs by 2033. But with current shortages, nearly 2 million of those could go unfulfilled (2).

The labor crunch is already affecting daily life.

Homeowners in many parts of the country are facing higher renovation and repair costs as contractors struggle with personnel shortfalls and projects piling up. Industry groups, including the Associated General Contractors of America, say shortages of skilled workers are contributing to delays, rising construction costs and longer project timelines (3).

Manufacturing and supply chain disruptions are also increasing costs for vehicles, appliances and other consumer goods production, while infrastructure projects are getting more expensive as companies try to find qualified labor and equipment (4).

Tariffs imposed by President Trump have also contributed to elevated costs in home renovation and manufacturing in the U.S. (5).

Farley said part of the problem comes from decades of underinvestment in vocational careers. To help reverse the trend, Ford has been working to attract younger workers into skilled trades.

Earlier this year, the company outlined plans to partner with Carhartt to offer free gear for workers and investments in workforce development partnerships, including support for a ToolBank USA location in Detroit (6).

Ford also brought together policymakers, educators and business leaders in September 2025 at a workforce summit focused on rebuilding the skilled labor pipeline.

“We stopped investing in the trades,” Farley said at the event (7). “If Henry Ford saw what has become of us, I think he’d be kind of mad.”

Fellow automaker General Motors, for its part, said in May that it has invested nearly $200 million over the past year to expand apprenticeship programs and workforce training initiatives (8).

The movement to bulk up the blue-collar workforce is opening new doors for workers. Jobs such as electricians, welders, mechanics and industrial technicians are in high demand.

Of course, the vulnerability of the U.S. economy extends beyond the shortage of skilled workers.

Inflation surged to 3.8% in April — the highest level in nearly three years — primarily due to the war in Iran. Even if the conflict ends, economists say it could take weeks or months for conditions to normalize (9).

Tariffs are another piece of the puzzle. The Center for American Progress reports the average family paid more than $1,700 in tariff costs from February 2025 to January 2026, and if the tariffs become permanent, they are projected to cost U.S. households $1,200 to $1,500 each year (10).

Fortunately, there are ways to shore up your finances against uncertainty. By investing in tangible assets with low correlation to traditional markets, you can help protect your portfolio from volatility — whether due to the skilled worker shortage, the war, inflation, tariffs or other factors.

The U.S. Dollar Index, which tracks the dollar against a basket of six major foreign currencies, fell 9.4% last year and has been relatively flat overall in 2026 (11). But unlike the dollar, gold soared in value over that same period — 2025’s historic bull run ended in a spot price well over $5,500 per ounce in early 2026 (12).

Historically, gold has acted as a hedge against inflation, and many consider it a more secure place to invest and protect their wealth.

One way to invest in the precious metal that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold — making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty.

To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases. Just keep in mind that gold is typically best used as just one part of a well-balanced portfolio.

While a declining dollar and rising inflation tend to push investors toward alternatives like gold, additional asset classes could merit a closer look.

One such asset has posted positive returns over the last 20 years, highlighting strong long-term investment potential. And with its moderate correlation with the movements of traditional markets, this alternative investment could help protect against current inflation, especially amid current geopolitical uncertainty.

That’s perhaps why this asset has long been favored by the ultrawealthy as a resilient and lucrative addition to their portfolios. With an estimated value of over $2.5 trillion — projected to reach nearly $3.5 trillion by 2030 — it represents a massive asset class, according to Deloitte (13).

You might be surprised to find out this asset is fine art.

Until recently, this world was off-limits thanks to a complex network of appraisers, curators and brokers — not to mention the raw capital needed to purchase a piece of exceptional art. Now, with Masterworks, you can buy fractional shares in multimillion-dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and typically requires a long-term hold, it offers unique portfolio diversification.

Masterworks has sold 27 artworks so far, yielding net annualized returns like 14.6%, 17.6% and 17.8%.

Moneywise readers can get priority access to diversify with art: Skip the waitlist here.

Note that past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com/cd.

Real estate is another tangible asset with a long history of adding stability to investors’ portfolios.

However, the time, effort and costs involved in managing and maintaining multiple properties prevent many from investing. So unless you’re a hedge fund titan or an oil baron, you’ve likely been shut out of this profitable sector.

That’s where mogul comes in. This real estate investment platform offers fractional ownership in blue-chip rental properties, giving investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or late-night tenant calls.

Founded by former Goldman Sachs real estate investors, the mogul team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.

Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% and 12% annually. With investments typically ranging between $15,000 and $40,000 per property, offerings often sell out in under three hours.

Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.

Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.

Beyond single-family assets, multifamily and industrial rentals represent another excellent investment opportunity, as both have a strong outlook for 2026 (14).

Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.

Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.

With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.

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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

@Jim.Farley/ YouTube (1); The Manufacturing Institute (2); Construction Equipment (3); Reuters (4); The Brookings Institution (5); Business Insider (6); Ford Motor Company (7); General Motors (8); CNBC (9); Center for American Progress (10); U.S. Bank (11); BBC (12); Deloitte (13); JPMorgan Chase (14)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.